In an era of heightened climate risks and evolving insurance dynamics, the traditional insurance model faces a conundrum. Insurers find themselves grappling with the aftermath of more frequent and severe storms, and struggling to collect adequate premiums while navigating stringent state regulations. Policyholders are witnessing a transformation in their coverage, seeing reductions in actual coverage areas. This shift harks back to an earlier time when policies only covered specific aspects, leaving many vulnerable to unforeseen circumstances.
At the heart of insurance lies the principle of risk transfer. However, with rising costs and limited coverage, consumers are questioning the value of their insurance investments, with many now turning to self-insurance, where individuals assume the financial risk ra